Topic: There is something wrong with understanding Bitcoin (Read 261 times)

People had confidence and were willing to receive fiat in exchange for goods and services because it was backed by the government. They had no option because it was the only means to survive in society. But Bitcoin is here to change the narrative. Bitcoin is giving people a decentralized way of carrying out financial transactions. Unlike fiat Bitcoin, It is giving people the right to privacy and freedom from government control.

Anyone that understands the volatility and decides to buy it is prepared to face the unpredictability of the market. The price of Bitcoin might be volatile but it is far better than some currencies that have lost so much value over the years. New investors are always fearful because they don't have experience with the working of bitcoin but they will get used to the space with time.

Fear and panic are natural emotions. There's nothing wrong with the people, who feel fear and panic in certain situations.
Actually there's something wrong with the people, who don't feel any fear at all.
Even the people, who understand how Bitcoin(and the blockchain) works could panic sometimes. The cryptocurrency markets are driven by more emotions and less logic, while the blockchain technology is built upon 100% logic.
The people are willing to work hard to earn fiat currency, because fiat currency is the legal tender and the only way to buy food and beverages.  Can you buy food with Bitcoin or altcoins?

Gold = Safe Haven and that is one of everyone's ambitions, especially rich people and any country. Yes, it's true that at this time people still think of BTC as a conventional currency like Dollars or Euros even though these are very much different like heaven and earth. Fiat currency is regulated by governments and central banks whereas Bitcoin is not. it can also be used as an investment instrument rather than as a means of daily payment by the community and converting local money according to their individual needs.

It's true that it could be used as a new type of investment but to see Bitcoin the way we all want it requires a process. For those who consider Bitcoin a new type of investment for those who just know, on its journey Bitcoin has proven to be longer than initial estimates.

Because Bitcoin is decentralized as in the book Bitcoin from beginner to expert, it cannot be controlled by a single entity that can regulate or control except the owner of Bitcoin.
This is different from fiat currency, which decreases in value when inflation and other things occur which result in people not having enough confidence to save in fiat.
People are attracted to Bitcoin as an investment option because there are better returns and gold from my knowledge is stable.

There is nothing wrong with the statement of many people that it depends on the person because maybe they still don't fully understand even though they appear to be someone who really understands.
Nothing is the same between one and many people in viewing and understanding Bitcoin as a type of investment or as a means of transaction.

What is wrong here is that People mostly enter bitcoin investing because someone told them or they have just read some good things via internet so they choose to invest without digging deep.
they believe mostly that this is about earning but never give a look about the risk and how we must treat this .

Imo, it might not be a panicking reaction, I think these investors are just over thinking and being skeptical of the possibilities for bitcoin not being able to recover from a sharp dip. So, I could say it's not totally panicking but some sort of worries which we could all agree that it's kind of normal reaction when we see our portfolio being down a few percentage.
Those who truly panics are the one's who thought to be selling their bitcoin during the crash. They always tend to have this kind of mindset as they think it could cut losses moving forward.

The view of Bitcoin as an investment is fundamentally wrong. Bitcoin in its creation is not an investment but a decentralized peer-to-peer payment method, a means of hedge against inflation, and a safe store of value.

All of these things have nothing to do with investment, but unfortunately people went in the wrong direction by using Bitcoin for speculation, which led to fluctuations and instability, but despite all these fluctuations, those with knowledge believe that Bitcoin is a profitable investment because it has one upward trend in the long run.

If you have been an investor for a long time, you'd also be suspicious and cautious in dealing with this new and strange investment opportunity in town. That's completely understandable. Investing in gold and silver other precious metals and stones, stocks, real estate, bonds, and so on are the usual. And here comes Bitcoin, a digital currency they say, created by somebody unknown, how could you not be wary of it, especially if you are not the techy kind of investor? And you're probably wrong. Bitcoin hasn't actually proven much yet. It's still very young and remains to be an unfamiliar territory to many investors.

In my opitnion I would say bitcoin is new technology even tho is already been a decade more by now but still if we look other traditional investment like you have said earlier like Gold is already there for a long long time that is why people would trust in gold rather than bitcoin. and like other people investing in new some kind of investment will take a greater risk.

1924 according to google mutual fund has created but still not a much people use it today. So I think bitcoin need time so people can really understand bitoin is, we might one of the early adopter of bitcoin

Simply because we all have a tendency to make money, making money is taking priority over anything in the present day. For example, if bitcoin was only used as a means of payment, are you sure that people would use it as widely as it is today? I'm not sure about that. Not only with bitcoin, any product is created no matter how advanced the technology is, but if it doesn't bring value in terms of profit, no one needs it. I can't say for sure, but I believe 99% of people are here for the profit, not the bitcoin technology.

If you invest your hard earned money on something and you see your investment going down, yes, you might panic too. No matter how much you have seen the market dips, when it happens to you, you will slightly panic. I think its very normal. Nothing is wrong with them. As long as they don't panic sell, they should be fine.
And I guess those who invest what they can't afford to lose are actually the one that panics a lot when the price goes down.

It is a broad context to fall into the simplicity of Bitcoin, which only requires buying or selling, and extensive hold, all this on an individual level, without going into all the collateral offered by the bitcoin niche.
 
There is nothing wrong here in the position of your idea, but you do not have to go so far back in history or compare yourself with other assets to understand or believe that there is something wrong with third parties in the understanding.

in understanding bitcoin, of course, everyone is different and based on the knowledge that everyone has,
including:

1: anyone wants to invest in btc because they want to get big profits because btc has a fluctuating nature and a limited amount of bitcoin supply, namely there are only 21000000,
and do not want to use btc as a means of payment and are only interested in being used as an investment.

2: there are some people who use btc as a means of payment and they accept payments using btc, but in this case we have to be smart in managing our business strategy because btc fluctuates.

so in my opinion in this case it's up to the person who goes through it because everyone's views are different.

A very good article then was published as a book that gives you very excellent view on Bitcoin and its potential in future.

The bullish case for Bitcoin
This book on Amazon

Use your time to read that article with comparisons for Bitcoin, gold and fiat. This chart (Bitcoin and Gold) shows the potential survival and growth of Bitcoin.

Since pandemic Covid-19 and many QEs, fiat printing, inflation globally, more people lost their belief in fiat currencies.

Bitcoin is still not the digital gold. It fails to show the proparty of gold of growing when economy or stock market suffers. Sometimes Bitcoin goes up when that happens, sometimes it goes down.

Bitcoin's value is unclear. Gold is trusted by everyone. Bitcoin is only trusted by a small percentage of total population, and the trend of increase is very small. It's also unclear just how much the people who own Bitcoin trust it, or whether they treat it as a speculative investment that should be dumped if it fails to perform. This all makes Bitcoin future very uncertain.

Hmm comparing the Gold investment or any type of other commodity or Asset's investment with Bitcoin is completely wrong. Bitcoin used to be called a Digital Asset but in reality, it's been just a payment mode. Now coming to the investment point most people use to convert their money to safe investments to secure their value but they don't take risks to make huge profits this type of investment can not be comparedbitcoinnSuchhthe type of Investment done in Gold, Silver or any other asset or commodity. Bitcoin is a risky market where investors through their money by knowing the risk to earn huge returns on it. Things should be clear now about Investing in assets and Bitcoin.

The much information and confidence we have in bitcoin's ability to recover from price volatility have made us more resilient than individuals who choose to worry when the price of bitcoin falls sharply after a high-risk investment. That's why those that are knowledgeable in bitcoin investment take a smart investment strategy to invest with the amount they can afford to lose and accumulate more bitcoin when the price is down.

Although we were all designed to respond to situations when they became bad and were beyond our control. I don't entirely blame those who are concerned about the price of bitcoin because they get into bitcoin investment wrongly and were caught on it in a way that they can't handle seeing how their bitcoin investment is reducing value.

I think it's a contradiction, those who understand Bitcoin should not panic about the price since they now how volatile it is. And for those who panic even though they know this, then it's a not a true investors at all.

Maybe for them they think that Bitcoin is a get rich quick scheme, invested and then when they see the price going down, they quickly push the sell button. So for them to really have knowledge, for me, at least one full cycles (bear and bull), will be a good good experience for everyone and see if they can really withstand what Bitcoin investment it and how they are going to react for the ever changing market.

Agreed, the problem is people thinks bitcoin is some kind of quick rich investment asset and they got humbled by the market. In general nothing can make you rich in a short period of time. Bitcoin is not for people who wants short-cut, the full potential of bitcoin investment depends on so many things and long term investment is one of them.

As an individual with a solid knowledge of bitcoin who's not concerned about its volatility - would you advise your friends & family to invest in Bitcoin more than they can afford to lose (or even go all in)? If not, why not? It's a sure thing, right?

Bitcoin has nothing to do with fiat currency, they are distinct in their own ways. Bitcoin can be used as substitute for fiat currency and it’s not regulated by any agency or government like the fiat currency. Bitcoin does not provide any protection of value to fiat.


Many people from ancient times are still finding it hard to switch into using this type of method to store money and still glued to the traditional banking system till day. You can’t blame them, new invention usually takes time before it is widely accepted globally.


Only individuals with little or no knowledge of bitcoin are concerned about its volatility. Those who have been in the market for a long time do not panic when there is market volatility, but rather take advantage of it whenever there is an opportunity to buy more. Anyone claiming to know about bitcoin should not worry, but if they do, they may be considered beginners who are simply afraid of facing market reality after learning about it.

With the ease of investing today, there is no age limit for anyone who can invest.
Especially in crypto investments that do not require KYC to make an investment in Bitcoin.
No need for an investment company or portfolio manager. only with a smartphone everything can be done easily.

But yes, with this convenience, beginners will enter without any knowledge or expertise, so they will easily get trapped and lose the value of their investment and their emotional tendencies will be disturbed when the investment fails. Psychology will be disturbed and make them to panic.

Investing in Bitcoin is different from investing in stocks, bonds, and real estate.
The risk will be greater, with faster price fluctuations due to high volatility. it will play with the psychology of beginners.

So, it's really important to understand how Bitcoin investment works to avoid panicking and losing more.

 In the future, the fiat system will be replaced by Bitcoin.
 And people will ready to learn how to go about before starting, this is the basic reason why there are so many investors loosing their investment at the end is because they lack knowledge. Because everyday the technology is upgrading and the technology is getting stronger.Also, as the market is generally known to be volatile. And before that time many younger ones and youths are also more dipper in Bitcoin investments, you know the old would not rule forever. And for gold, gold will remain there as an asset of investment. Gold is here on Earth's for more than years, and it's still available, in the world majority of the countries are still using gold. Gold however, will remain important and valuable.

For a decade people are hearing about Bitcoin going up and dying several times, yet up to this day it's still alive. They sure have an understanding of what BTC does. Whether they see it as investment or currency, it's going to make them profit.

It's not the understanding of Bitcoin that is wrong, its what they believe it can do in a short period of time especially when they see it as a get rich quicxk.

What kind of Bitcoin knowledge claims it will only go up in price? There are plenty of factors that have the potential of seriously crippling Bitcoin price for a very long time.
Panic is an emotional state and emotions are not something that should affect trade decisions, but the same can be said about holding forever spproach. Selling when the price starts do drop is often a wise move.

That's true we invest basically to earn more returns from our investments, and it's also our main aim to recover our investment first and then allow the investment for sometime so that we can gain some good profits form it. I agree that there are many good books that can be helpful in learning the concepts of trading. Investment is a way to earn good returns but only practiced by few people who know the art very well.


That's as true as the sourness of lemon water, and still a very believable thing. Many people still hold the ancient beliefs and thus invest in gold as that is a resource with limited quantity, and is considered as precious. Many people who invested in gold are among the group of rich people in a society and that's a fact.


I agree that Bitcoin is something more special for the investors than gold or anything else, but still I disagree that it can protect the value of a fiat currency. Bitcoin has nothing to do with fiat they are controlled by governments and banks, and in that case Bitcoin can work as an asset for those who might convert their fiat to Bitcoin. Other than that Bitcoin won't help to save any fiat currency from inflation or devaluation.

Bitcoin is a type of cryptocurrency, making crypto an umbrella name for blockchain digital assets, not a different name for Bitcoin.
Also, Bitcoin does not protect the value of dust currency, it protects the value of your money. If you buy Bitcoin, that's your definition of money and it is resistant to inflation, it does not help stop inflation in fiat.

Anyone with understanding of Bitcoin and how volatility works would not panic when the price drops. Those who lack the knowledge of the basics and are only into it for a quick profit would.

First of all, Bitcoin isn't created with the intention of being used as an investment just we are using it in that way because we realised the Fiat is losing its value whereas the crypto is growing and keep growing so it lead to the big players to enter into the market and now its stand as a good asset for long term investments.

Not everyone aware of Fiat is losing its value even now then why they would be saving money in their bank accounts so only few managed to get and made lots of money and let the others to sit in the middle class people to keep chasing the money forever.

I do not understand why everyone insists on adopting a single definition of Bitcoin in terms of being an investment tool and overlooking the fact that Bitcoin is a means of payment.  The definition of bitcoin is not limited to being just a currency that performs investment purposes, and for this we only see attempts to employ it in a specific way in order to achieve profits. 
Most of the topics raised in Bitcoin discussions are not interested in employing Bitcoin technology in business, which will help achieve profits in a different way.

Gold has traditionally been viewed as an important form of investment.  It is considered a safe haven, as its value tends to remain stable or even increase during periods of economic instability or financial crises.  Physical gold, such as gold bars or coins, is still considered a safe form of investment by many people, despite the advent of digital gold investment platforms.

So despite the fact that fiat currencies were once tied to gold now they are not anymore and people have forgotten this very important part and instead of rebelling they trusted the lies of governments and accept paper which is good for a**

wrong
those that dont understand basic economic of investing panic.
those that dont understand bitcoin panic

basically its the newbie that panic not the experienced investor of bitcoin

what is wrong is that inexperienced people can easily invest, more so now then newbies decades ago..even without the knowledge/expertise. which then rips at their emotions because they are not sure what to do due to lack of experience.

.. decades ago people needed to contact investment companies/portfolio managers and use their expertise to invest. now people can self manage investments. and if you dont have the knowledge/expertise then you get emotional

The real situation here is that e everyone want this change in the way of their financial economy and I've heard about bitcoin, they are interested in it and want to invest, but only few were ready to learn how to go about before starting, this is the basic reason why there are so many investors loosing their investment at the end because they lack what it takes to withstand any challenge through this, some also fall into investing on shitcoins at the course, while some may get scammed, all because they lafk the basic information need right before they started.

Investment is a form of investment activity with the aim of being able to take back money and hope for profits. There are many other understandings of investment that are found in various books and articles.
Investment is like a trend that is most in demand by various groups of human resource groups of various age groups.

In the past, long before technological sophistication like today, gold was the type of investment that was most in demand by various groups of human resources of various age groups and gold investment is still ongoing today.
A compelling reason to invest in gold is to maintain a hedge against fiat currencies that can change in value at any time and become a strong midset.
They continue to save and will not sell (hold) as long as there is no urgent need.

Gold is a natural resource that is processed by humans in various stages.
In the all-digital era, people still have the confidence to buy physical gold even though there are already many gold investment sites digitally.

The birth of Bitcoin, which is known as crypto in the digital era, can be used as a new type of investment in an effort to protect the value of fiat currency which can change or even be worthless.

In conclusion, the level of people's trust in fiat from ancient times to very low. People are willing to work hard to earn fiat currency and convert into this type of investment.
Those who understand Bitcoin, including its volatility and choose to invest in Bitcoin, are very easy to panic about the price, even though Bitcoin has been proven to be a future investment choice. There must be something wrong with them.